All Forum Posts by: Nick C.

First experience with a 1031 exchange and DST. Let's see how this goes!

Sold our vacation rental and have put the proceeds into two DST offerings. Both are multi-family apartments and one has a 3.9% distribution rate and the other is 4.01%. Both were offered by Capital Square.

I'd talk to a real estate professional in the market first.  I've been a cabin owner for the last 9 years and just recently sold but from my experience, people are looking for cabins to rent and not homes.  I may be wrong but that's why I'd contact a real estate agent.  

thanks for the replies and insight.  She's in the process of moving and can't remember if she had title insurance.   The previous owners family is cooperating but it still has to go through probate.  She's closing next Wed on her new house so it's adding some additional stress to her move.  Thanks again.

I have a question for those that might know the answer or have input.

My daughter just sold her house that she's owned for about 5 years.  She bought it from an older lady whose grandson had power of attorney.  While the paper work was being processed for the sale that's in process now, it was noticed that the grandson notarized his own signature on the power of attorney document and it now has to go through probate.  Her real estate agent tried to explain it away, saying it's human error and those things happen.  

My questions are:  Is this really something that happens and you just have to deal with it?  What accountability does the title company have in this in not doing their job and finding this when it originally happened?  Is it worth my daughter's time to pursue legal action? Thanks for any input.

I was happy with it but I wasn't looking at it to generate profit.  All I wanted was for it to pay for itself.  We had a 4 BR 3.5 bath and our gross pre-covid was between $50 and $60k but we used it quite a bit.  After all expenses, we were between -3K and +3K each year. That was mostly due to how much we spent on misc. expenses.  I budgeted $5k per year for that.  Some years were over (new couch, mattresses, etc) and others it wasn't as much.

I'm doing a 1031 Exchange into a DST. With the money from the DST, we'll most likely get back into a cabin down there again in a couple years but only rent to family and friends.

Even with all the frustrations, every year I would ask myself if I would do it again and the answer was always yes.  If my cabin hadn't appreciated as much as it did, we would still own it.

Be happy to answer any other questions you have.

Two reasons.  First, got tired of the damage that renters did and secondly to take advantage of the appreciation over the last nine years.  

@Lane C. I'm in the process of selling my cabin in Sevierville.  We used @Jay Fradd when we bought and also to sell.  He's knowledgeable of the area and also has cabins he rents in the area.  A great resource that understands both sides.

security system and ongoing monitoring.

You guys have a lot more confidence than I have.  I'm one of the ones that is selling and you are right, we got crazy offers with escalator clauses, waiving appraisal and inspection.  

We bought ours about 9 years ago because we loved the area and figured it would be a good way to get some "free" vacations.  We had it with a PM because we live about 4 hours away and I have a regular job too.  Even using a PM, I felt like I worked on the cabin half the time we were there so I wouldn't have to pay someone to do it.  It became less and less like a vacation.  

We just booked time at someone else's cabin in January.  Looking forward to just relaxing.

Good luck.  There certainly are a lot of people that vacation down there.

@William Beck the market made the decision a lot easier.